Net revenues for the third quarter of 2010 increased 23% on a
year-over-year basis, and increased 3% sequentially, to $1,012.4 million.
The Company posted GAAP net income of $134.5 million, or $0.25 per diluted
share, and non-GAAP net income of $171.5 million, or $0.32 per diluted
share, for the third quarter of 2010. Non-GAAP net income per diluted share
increased 39% compared to the third quarter of 2009 and increased 7%
compared to last quarter. The reconciliation between GAAP and non-GAAP
results of operations is provided in a table immediately following the Net
Revenues by Market table below.

"Juniper's results reflect our ability to deliver on the promise of the New
Network with cost effective solutions that scale to meet growing network
demand," said Kevin Johnson, Juniper's chief executive officer. "We
anticipate customer demand to remain healthy and are well-positioned to
drive further gains as we enable the deployment of secure, scalable
wireless networks and deliver solutions to the growing cloud computing
market."

Juniper's operating margin for the third quarter of 2010 increased to 19.3%
on a GAAP basis from 18.9% in the second quarter of 2010, and increased
from 15.5% in the prior year third quarter. Non-GAAP operating margin for
the third quarter of 2010 increased to 24.1% from 23.9% in the second
quarter of 2010 and increased from 20.8% in the prior year third quarter.

Juniper generated net cash from operations for the third quarter of 2010 of
$131.4 million, compared to net cash provided by operations of $221.3
million, in the second quarter of 2010, and $223.9 million in the same
quarter of the prior year.

Capital expenditures, as well as depreciation and amortization expense
during the third quarter of 2010, were $54.3 million and $39.6 million,
respectively.

During the quarter, Juniper acquired SMobile Systems, Inc. for $69 million,
a privately-held software company focused solely on smartphone and tablet
security solutions for the enterprise, service provider, and consumer
markets. With SMobile's product portfolio integrated with Junos® Pulse,
the Company has extended its security focus.

"We continue to execute well against the operating principles that we set
at the beginning of the year," said Robyn Denholm, Juniper's chief
financial officer. "We exited this quarter with strong demand metrics and
good momentum and we are on track to deliver 20% or higher revenue growth
for the full year."

To participate via telephone, in the U.S. the toll free dial-in number is
877-407-8033; outside of the U.S. dial 201-689-8033. Please call ten
minutes prior to the scheduled conference call time. The webcast replay of
the conference call will be archived on the Juniper Networks website until
December 14, 2010.

About Juniper Networks
Juniper Networks is in the business of network innovation. From devices to
data centers, from consumers to cloud providers, Juniper Networks delivers
the software, silicon and systems that transform the experience and
economics of networking. The company serves customers and partners
worldwide, generating revenues exceeding $3 billion over the last year.
Additional information can be found at www.juniper.net.

Juniper Networks and Junos are registered trademarks of Juniper Networks,
Inc. in the United States and other countries. The Juniper Networks and
Junos logos are trademarks of Juniper Networks, Inc. All other trademarks,
service marks, registered trademarks, or registered service marks are the
property of their respective owners.

Statements in this release concerning Juniper Networks' business outlook,
economic and market outlook, future financial and operating results, and
overall future prospects are forward-looking statements that involve a
number of uncertainties and risks. Actual results or events could differ
materially from those anticipated in those forward-looking statements as a
result of certain factors, including: general economic conditions globally
or regionally; business and economic conditions in the networking industry;
changes in overall technology spending; the network capacity requirements
of communication service providers; contractual terms that may result in
the deferral of revenue; increases in and the effect of competition; the
timing of orders and their fulfillment; manufacturing and supply chain
constraints; ability to establish and maintain relationships with
distributors, resellers and other partners; variations in the expected mix
of products sold; changes in customer mix; changes in geography mix;
customer and industry analyst perceptions of Juniper Networks and its
technology, products and future prospects; delays in scheduled product
availability; market acceptance of Juniper Networks products and services;
rapid technological and market change; adoption of regulations or standards
affecting Juniper Networks products, services or the networking industry;
the ability to successfully acquire, integrate and manage businesses and
technologies; product defects, returns or vulnerabilities; the ability to
recruit and retain key personnel; significant effects of tax legislation
and judicial or administrative interpretation of tax regulations; currency
fluctuations; litigation; and other factors listed in Juniper Networks'
most recent report on Form 10-Q filed with the Securities and Exchange
Commission. All statements made in this press release are made only as of
the date set forth at the beginning of this release. Juniper Networks
undertakes no obligation to update the information in this release in the
event facts or circumstances subsequently change after the date of this
press release.

Juniper Networks believes that the presentation of non-GAAP financial
information provides important supplemental information to management and
investors regarding financial and business trends relating to the company's
financial condition and results of operations. For further information
regarding why Juniper Networks believes that these non-GAAP measures
provide useful information to investors, the specific manner in which
management uses these measures, and some of the limitations associated with
the use of these measures, please refer to the discussion below.

The table above includes the following non-GAAP financial measures from our
Preliminary Condensed Consolidated Statements of Operations: cost of
product revenue; cost of service revenue; product gross margin, product
gross margin as a percentage of product revenue; service gross margin;
service gross margin as a percentage of service revenue; gross margin;
gross margin as a percentage of revenue; research and development expense;
sales and marketing expense; general and administrative expense; operating
expense; operating income; operating margin; net other income and expense;
income before income taxes and noncontrolling interest; provision for
income taxes; income tax rate; net income; net income per share and net
income as a percentage of revenue. These measures are not presented in
accordance with, nor are they a substitute for, U.S. generally accepted
accounting principles, or GAAP. In addition, these measures may be
different from non-GAAP measures used by other companies, limiting their
usefulness for comparison purposes. The non-GAAP financial measures used in
the table above should not be considered in isolation from measures of
financial performance prepared in accordance with GAAP. Investors are
cautioned that there are material limitations associated with the use of
non-GAAP financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the exclusion of
items that are recurring and will be reflected in our financial results for
the foreseeable future.

We utilize a number of different financial measures, both GAAP and
non-GAAP, in analyzing and assessing the overall performance of our
business, in making operating decisions, forecasting and planning for
future periods, and determining payments under compensation programs. We
consider the use of the non-GAAP measures presented above to be helpful in
assessing the performance of the continuing operation of our business. By
continuing operations we mean the ongoing revenue and expenses of the
business excluding certain items that render comparisons with prior periods
or analysis of on-going operating trends more difficult, such as expenses
not directly related to the actual cash costs of development, sale,
delivery or support of our products and services, or expenses that are
reflected in periods unrelated to when the actual amounts were incurred or
paid. Consistent with this approach, we believe that disclosing non-GAAP
financial measures to the readers of our financial statements provides such
readers with useful supplemental data that, while not a substitute for
financial measures prepared in accordance with GAAP, allows for greater
transparency in the review of our financial and operational performance. In
addition, we have historically reported non-GAAP results to the investment
community and believe that continuing to provide non-GAAP measures provides
investors with a tool for comparing results over time. In assessing the
overall health of our business for the periods covered by the tables above
and, in particular, in evaluating the financial line items presented in the
table above, we have excluded items in the following three general
categories, each of which are described below: Acquisition-Related Charges,
Other Items, and Stock-Based Compensation Related Items. We also provide
additional detail below regarding the shares used to calculate our non-GAAP
net income per share. Notes identified for line items in the table above
correspond to the appropriate note description below. Additionally, with
respect to future financial guidance provided on a non-GAAP basis, we have
excluded estimates for stock based compensation expense and related payroll
taxes, amortization of intangible assets, restructuring charges and
acquisition-related and other charges.

Note A: Acquisition-Related Charges. We exclude certain expense
items resulting from acquisitions including the following, when applicable:
(i) amortization of purchased intangible assets associated with our
acquisitions; (ii) compensation related to acquisitions; and (iii)
acquisition-related charges. The amortization of purchased intangible
assets associated with our acquisitions results in our recording expenses
in our GAAP financial statements that were already expensed by the acquired
company before the acquisition and for which we have not expended cash.
Moreover, had we internally developed the products acquired, the
amortization of intangible assets, and the expenses of uncompleted research
and development would have been expensed in prior periods. Accordingly, we
analyze the performance of our operations in each period without regard to
such expenses. In addition, acquisitions result in non-continuing operating
expenses, which would not otherwise have been incurred by us in the normal
course of our business operations. For example, we have incurred deferred
compensation charges related to assumed options and transition and
integration costs such as retention bonuses and acquisition-related
milestone payments to acquired employees. We believe that providing
non-GAAP information for acquisition-related expense items in addition to
the corresponding GAAP information allows the users of our financial
statements to better review and understand the historic and current results
of our continuing operations, and also facilitates comparisons to less
acquisitive peer companies.

Note B: Other Items. We exclude certain other items that are the
result of either unique or unplanned events including the following, when
applicable: (i) restructuring and related costs; (ii) impairment charges;
(iii) gain or loss on legal settlement, net of related transaction costs;
(iv) retroactive impacts of certain tax settlements; (v) significant
effects of tax legislation and judicial or administrative interpretation of
tax regulations; (vi) gain or loss on equity investments; and (vii) the
income tax effect on our financial statements of excluding items related to
our non-GAAP financial measures. It is difficult to estimate the amount or
timing of these items in advance. Restructuring and impairment charges
result from events, which arise from unforeseen circumstances, which often
occur outside of the ordinary course of continuing operations. Although
these events are reflected in our GAAP financials, these unique
transactions may limit the comparability of our on-going operations with
prior and future periods. In the case of legal settlements, these gains or
losses are recorded in the period in which the matter is concluded or
resolved even though the subject matter of the underlying dispute may
relate to multiple or different periods. As such, we believe that these
expenses do not accurately reflect the underlying performance of our
continuing operations for the period in which they are incurred. Similarly,
the retroactive impacts of certain tax settlements and significant effects
of retroactive tax legislation are unique events that occur in periods that
are generally unrelated to the level of business activity to which such
settlement or legislation applies. We believe this limits comparability
with prior periods and that these expenses do not accurately reflect the
underlying performance of our continuing business operations for the period
in which they are incurred. Whether we realize gains or losses on equity
investments is based primarily on the performance and market value of those
independent companies. Accordingly, we believe that these gains and losses
do not reflect the underlying performance of our continuing operations. We
also believe providing financial information with and without the income
tax effect of excluding items related to our non-GAAP financial measures
provide our management and users of the financial statements with better
clarity regarding the on-going performance and future liquidity of our
business. Because of these factors, we assess our operating performance
both with these amounts included and excluded, and by providing this
information, we believe the users of our financial statements are better
able to understand the financial results of what we consider our continuing
operations.

Note C: Stock-Based Compensation Related Items. We provide non-GAAP
information relative to our expense for stock-based compensation and
related payroll tax. We began to include stock-based compensation expense
in our GAAP financial measures in accordance with Financial Accounting
Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic
718, Compensation - Stock Compensation ("FASB ASC Topic 718"), in January
2006. Because of varying available valuation methodologies, subjective
assumptions and the variety of award types, which affect the calculations
of stock-based compensation, we believe that the exclusion of stock-based
compensation allows for more accurate comparisons of our operating results
to our peer companies. Further, we believe that excluding stock-based
compensation expense allows for a more accurate comparison of our financial
results to previous periods during which our equity-based awards were not
required to be reflected in our income statement. Stock-based compensation
is very different from other forms of compensation. A cash salary or bonus
has a fixed and unvarying cash cost. For example, the expense associated
with a $10,000 bonus is equal to exactly $10,000 in cash regardless of when
it is awarded and who it is awarded by. In contrast, the expense associated
with an award of an option for 1,000 shares of stock is unrelated to the
amount of compensation ultimately received by the employee; and the cost to
the company is based on a stock-based compensation valuation methodology
and underlying assumptions that may vary over time and that does not
reflect any cash expenditure by the company because no cash is expended.
Furthermore, the expense associated with granting an employee an option is
spread over multiple years unlike other compensation expenses which are
more proximate to the time of award or payment. For example, we may be
recognizing expense in a year where the stock option is significantly
underwater and is not going to be exercised or generate any compensation
for the employee. The expense associated with an award of an option for
1,000 shares of stock by us in one quarter may have a very different
expense than an award of an identical number of shares in a different
quarter. Finally, the expense recognized by us for such an option may be
very different than the expense to other companies for awarding a
comparable option, which makes it difficult to assess our operating
performance relative to our competitors. Similar to stock-based
compensation, payroll tax on stock option exercises is dependent on our
stock price and the timing and exercise by employees of our stock-based
compensation, over which our management has little control, and as such
does not correlate to the operation of our business. Because of these
unique characteristics of stock-based compensation and the related payroll
tax, management excludes these expenses when analyzing the organization's
business performance. We also believe that presentation of such non-GAAP
information is important to enable readers of our financial statements to
compare current period results with periods prior to the adoption of FASB
ASC Topic 718.

Note D: Non-GAAP Net Income Per Share Items. We provide basic
non-GAAP net income per share and diluted
non-GAAP net income per share. The basic non-GAAP net income per share
amount was calculated based on our
non-GAAP net income and the weighted-average number of shares outstanding
during the reporting period. The diluted non-GAAP income per share included
additional dilution from potential issuance of common stock, except when
such issuances would be anti-dilutive.